The mysteries of 401k savings are little understood by most people, yet they are an important part of personal finance in the USA.

A big question, often asked, is what happens to their 401k savings when they quit working. The reality is, not many people work in the same job for an entire lifetime. When you quit working, you have some options.

First, you can cash out. This is probably not your best option, but it’s your money. You can have the plan send you a check, and you can spend it as you please. Note that you’ll only get a check for 80% of your money in the plan — the other 20% goes directly to the IRS as a down payment on your taxes. They figure you’ll owe them at least that much. If it turns out you owe less, you may get it back as a refund.

Next, you could leave the money in the 401k plan. Your account balance often has to be above $5,000 to do this, but some smaller employers will let you hang around even if you have a smaller balance. Depending on how much you like the plan, this might be a good option. However, you’re leaving your retirement savings in somebody else’s hands — your former employer’s. They decide which investment company handles the money, and they have to sign off on any distributions from the plan. This can make it tough to get anybody to do anything if you ever want to do something with your money – you have to wait for several people to sign off.

Finally, you can roll your savings over to another similar account. If your new job has a 401k or 403b, these might work. Likewise, you could just roll the money into an IRA, where there will be no employer involved at all. By taking the money with you, you keep control over it. The only drawback to this option is that you actually have to take action and make some decisions on what to do with the money.

Of course, you’ll find that tax laws around these accounts change every day. Therefore, you ought to speak with a tax advisor and get some individualized input on what to do before you make any expensive mistakes.

If you are a Turbo Tax customer who couldn’t e-file your tax return on April 17 due to high server volume, you will be glad to know the IRS has extended the deadline to midnight, April 19.

Millions of taxpayers trying to electronically file tax returns at the 11th hour jammed servers and some filers were turned away. The company processed more returns on April 17 than they did on peak filing day last year.

The IRS has agreed to extend the deadline for taxpayers who were unable to file because of problems with the system. Turbo Tax is a product of Intuit, Inc.

1. It’s easier. Tax preparation software prefills a lot of information (especially if you get your W2 online). It’s quicker to punch in numbers on your keyboard than to try to write it all out legibly.

2. Fewer mistakes. Again, tax preparation software makes it easier by doing all the math for you. Fewer mistakes mean a return that is processed faster.

3. No missing tax breaks. The tax program you use will be loaded with all the new tax rules and allowable deductions, whereas some IRS forms this year have some deduction lines missing and taxpayers who don’t know about those deductions can miss some important tax savings.

4. It’s faster. The IRS estimates that it processes electronically-filed tax returns in half the time it takes to process paper returns.

Buying a good tax preparation software might save you money and pay for itself. If your adjusted gross income is less than $52,000, you can use the IRS’s Free File service by choosing an e-file partner company from the IRS website. Electing for direct deposit saves time too and gets your refund to you even faster.

At a forum in Omaha, Nebraska, yesterday, taxpayers were given an opportunity by the IRS to air their grievances with the tax system. The range of complaints was wide and included one account of being kept on hold for forty minutes after asking a simple question, others worried about identity theft, and some objected to being taxed at all.

The next forum will be in Phoenix and will concentrate on the problems experienced by the elderly. Although there was no information regarding how many of the complaints and suggestions would be acted upon, it is refreshing to see the IRS listening.

Forum Lets Taxpayers Turn Tables on IRS